Stay Ahead of Your Game: Avoid Insolvency Long Before It Comes A-Knocking

Tue, Sep 11, 2012

Financial Advice

Few situations are more unpleasant in business than finding yourself faced with the dreaded spectrum of insolvency. Creditors are knocking on your door, threatening to tear it down, your staff is threatening litigation over unpaid salaries and you can barely remember the last time you paid your headquarters rent or utilities. However, difficult as such a situation may be, it is by no means uncommon. On the contrary, recently released figures from the Australian Securities and Investments Commission have revealed that the number of insolvency court appointments has been on a steady rise from as early as the 2007-2008 fiscal year. However, while there were 9,200 such appointments in five years ago, 2011-2012 saw over 11,700 such cases. To call insolvency a plague of the national business scene would be to spread pointless panic, yet the growing trend is apparent at first glance. So what can a business owner constructively do, in order to steer clear of the situation in which they can no longer afford repaying their debts or paying their staff? There are several simple solutions available to any company, but especially appropriate for small enterprises. Read on, if you’re looking to minimize expenditure at your firm.

Don’t Be Afraid to Outsource

Many entrepreneurs and otherwise brash start-up owners prefer to keep everything in-house, out of a poorly understood need to oversee every small step of their business plan unfurling. While precaution and daily updated insights are valuable commodities, it is equally true that an efficient manager should know how and when to delegate responsibility—what is more, they should also figure out how to avoid having staff costs running through the roof. More simply put, there are aspects in any business (account keeping, IT maintenance and legal consultancy spring to mind as prime examples) that are better off outsourced. As online presence is becoming increasingly important for current business-making, it is an equally viable option to pay an expert for handling your website, blog and corporate Social Media accounts. Don’t spend a small fortune on a permanent employee, but rather stimulate freelancing, while enjoying lower overall costs for possibly better services.

Location Matters – The Twenty-First Century Approach

Think about it: do you really need a full-time office? How many of your staff absolutely have to come into the office each day? How many of them could do the same job from home? How often do you hold meetings or conferences with clients, partners, etc.? We’d be willing to bet it’s nowhere near as often as you tend to think. Put it all down on paper, however, and then work out whether or not your business couldn’t benefit more from a serviced office solution. We found this option at Regus.com.au (http://www.regus.com.au/products/offices/serviced-offices.aspx), a provider of fully appointed business spaces, readily available within a matter of hours, for meetings and other encounters that can only be held in a professional environment. Use this solution, then for the rest of your activity, switch to a work-at-home solution to avoid paying rent. Chances are you’ll be saving loads.

Mobility Is Best, Forget the Rest

The one type of asset that you ought to invest in is anything that has to do with mobility. Don’t skimp on means of communication or IT hardware, or you’ll be paying the price later, when your competition gets all the news before you do, or has become a much more visible presence online. Stay connected and updated, and, also, travel. Communicate. Network—for, no matter how brilliant your business idea and how cleverly articulated your strategy, it stands no chance without the proper exposure.

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